Stellantis and Element 25 Limited on Monday announced they had signed a binding agreement, under which Element 25 will supply battery grade, high purity manganese sulphate monohydrate to Stellantis to be used in electric vehicle batteries.
The 5-year agreement envisages a total supply volume of 45 kilotons with options to extend the supply term and to increase volumes.
The manganese sulphate monohydrate will be sourced from Element 25 Limited’s Butcherbird project in Western Australia, while the firm intends to establish a processing facility in the United States.
Manganese is a crucial stabilizing element in the cathode of electric vehicle batteries.
“Our commitment to a carbon net zero future includes creation of a smart supply chain to ensure we meet our customers’ desire for EVs,” Carlos Tavares, Stellantis’ Chief Executive Officer, said in a press release.
“Electric vehicles that deliver breakthrough customer experience in propulsion, connectivity and convenience are central to our Dare Forward 2030 plan that delivers safe, clean and affordable mobility,” the CEO added.
The auto maker intends to invest over EUR 30 billion through 2025 in electrification and software development, as it aims to continue to be 30% more efficient than the industry with respect to total Capex and research & development spend versus revenues.